resortrealestate

The Federal Reserve is doing its best to invigorate the housing market and its current plan is to invest an additional $750 billion into Fannie and Freddie.  The influx of cash into the mortgage market is expected to drop interest rates even further, making 30 year fixed rates to be 4.5% or possibly even lower.  This move by the Federal Reserve will make property less expensive and create a great deal of opportunity for those looking to invest in real estate .   According to a recent article by Kenneth Harney “rates in the mid-four percent range or lower could even put upward pressure on selling prices. That’s because when you lower the monthly cost of borrowing to buy a house, you make it more affordable, even at a slightly higher price.”  The Federal Reserve is doing what it can to revitalize the real estate market , let’s see if it builds the confidence that buyers need to jump in.

This move by the Federal Reserve will definitely affect resort real estate as well.  People looking to buy second homes will be in a great position, low housing values will be even lower in the long run with such low interest rates.  If you have been waiting for the right opportunity to purchase your vacation home now just might be the time.

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